What are
toughest problems facing online retailers in 2003?Problem # 1 Getting visitors
The number one complaint of online retailers is they are not getting enough visitors.
Many choose to get visitors
same way their competitors do. Online retailers try search engine placement, pay-per-clicks, banner ads and other marketing tactics.
Banners can cost as little as $1 per 1000 views. Email lists can be as inexpensive as $30 per 10,000 names. Despite these low prices, retailers are finding that many times these tactics don't deliver enough sales to justify
cost.
Problem # 2 Low conversion rates
Turning visitors into customers is
second biggest problem that online retailers face. This becomes a greater problem when retailers sell items that people prefer to see and touch before buying, such as clothing.
Do you know
answers to this question:
What percentage of your visitors become your customers?
That percentage is your sales conversion rate. This number is one of
most overlooked and most impactful numbers in online marketing. It's overlooked because website owners often think that more visitors is
route to more customers. What if their marketing is bringing lots of visitors but their website is sending them away?
Websites can send visitors away in many ways, from frustratingly slow download times to poor sales copy. Visitors in general complain of having to download plug-ins to view
website and confusing navigation.
Most ecommerce businesses are getting 1-2% sales conversion. A small change in your conversion rate can have a big impact on your bottom line.
Let's say you run your numbers and find that you have a 1% conversion rate. Applying marketing know-how, you make some changes to your website that makes customers more likely to buy. Next week you test your sales conversion rate and find that it's 2%. You've doubled your sales, without spending more money marketing!
Once you get your sales conversion higher, your marketing budget performs better. The same money that was bringing you 1% sales conversion is now bringing 2% sales conversion.